## Financial Statements
For the year ended 31 August 2022
**West London Mission Housing Association Limited**
## **West London Mission Housing Association Limited**
## **Contents**
||Page|
|---|---|
|Directors’ report|1–3|
|Independent Auditor's report|4-7|
|Consolidated Statement of Comprehensive Income|8|
|Consolidated Statement of Financial Position|9|
|Association Statement of Financial Position|10|
|Consolidated Statement of Cash Flows|11|
|Notes to the financial statements|12-26|
## **West London Mission Housing Association Limited**
## **Company information**
## **Directors**
Rev P Cornick Rev N Cowgill Rev A J Dart Mr J M Furniss Mr J S Neilson Mr R Ovenden Mr M J Single Ms ACJ Siow Mr G T Slater
**Secretary** Ms C Dance **Registered office** 19 Thayer Street London W1U 2QJ **Registered company number** 00495241 **Registered charity number** 281929 **Regulator of Social Housing registration number** LH3373 **Independent Auditors** Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP
## **West London Mission Housing Association Limited**
## **Directors’ report For the year ended 31 August 2022**
The directors present their report and the consolidated financial statements for the year ended 31 August 2022.
## **Principal activities**
The company is a charitable housing association limited by guarantee. Its principal activities are:
- Those of a housing association whose properties are used in connection with housing people who require assistance, and
- Those of trustee of the West London Mission Donald Soper Fund.
These financial statements incorporate the financial statements of the individual housing and community services located in the properties mentioned therein.
These financial statements also incorporate the incoming resources, resources expended, and the assets and liabilities of the West London Mission Donald Soper Fund. The object of the Fund is to support the charitable housing and community services of the West London Mission Circuit of the Methodist Church (“the Circuit”), commonly known as WLM Services.
The company is the registered owner of various properties in which the housing and community services of the West London Mission are carried on. The staff of all these services are jointly employed by the company and the West London Mission Circuit.
The West London Mission Circuit manages the following properties owned by the company and the resulting surplus or deficit (except for amortisation and depreciation on housing properties, amounts set aside for dilapidations and surplus on disposal of properties) is passed to the West London Mission Circuit.
During the period under review the occupants of each property were as follows:-
|WLM St Luke’s Centre|This site contains a residential site providing 26 bedrooms|This site contains a residential site providing 26 bedrooms|
|---|---|---|
|25A Wincott Street|with shared facilities|and support for British Army ex-|
|London SE11|service people. Some of the bed spaces are currently used||
||to provide low cost housing for key workers.||
||In addition the site contains a community Hub providing||
||financial and digital resilience support for the local||
||community and hosts local community providers who||
||deliver projects and services on site.||
|WLM The Haven|This site provided specialist residential care for men with||
|280 Holly Park|long term alcohol dependency. This service was closed on||
|London N4|30 September 2021.||
|WLM Burgess Park House|This site provided supported housing for ex-service people||
|56 Camberwell Road|who have experienced homelessness offering support in||
|London SE5|sustaining accommodation. This service was suspended on||
||the 8 February 2022|while various Health and Safety|
||issues are resolved.|During the year improvements have|
||been made to tackle|the health and safety issues and|
||enable the property to be let from Summer 2023||
|WLM Cherry Tree House|This site provides follow on accommodation for residents of||
|343 Clapham Road|Burgess Park House and St Luke’s Residential to move on||
|London SW9|to their own flat when ready for independent living.||
The service at WLM The Haven was closed in September 2021 and the residents successfully moved to other providers.
1
## **West London Mission Housing Association Limited**
## **Directors’ report (continued) For the year ended 31 August 2022**
The Association having considered the future use of the property in line with its objectives is working with DePaul UK, New Horizons and the GLA and the building was leased to DePaul UK from November 2022 to deliver a provision for homeless young people aged 18-25.
The company leased the following property to the Trustees for Methodist Church Purposes for a term of ten years from 1 April 2005, subsequently the lease has been renewed to 2024, the West London Mission Circuit Meeting being the managing trustees for that term:
WLM Katherine Price Hughes House 28 Highbury Grove London N5
It is an "approved premise" under the Criminal Justice and Courts Service Act 2000 and provides housing and support services for men released from custody on licence, with a view to prevention of physical or psychological harm to the community upon release from prison and transition back to the community.
## **Directors**
The members set out below have held office during the whole of the period from 1 September 2021 to the date of this report unless otherwise stated:
Rev P Cornick Rev N Cowgill Rev A J Dart Mr J M Furniss Mr J C Hicks (died 11 March 2022) Mr J S Neilson Mr R Ovenden Mr M J Single Ms A C J Siow Mr G T Slater Rev P Weary (to 14 February 2022)
The amount guaranteed by each director in the event of the winding-up of the company is £1.
We record with great sadness the death of John Hicks and acknowledge with gratitude his many years of service to the Association.
## **Directors’ responsibilities**
Registered Providers’ legislation requires the directors to prepare financial statements for each financial period which give a true and fair view of the state of the Association and the group as at the end of the financial period and of the income and expenditure of the group for the period ended on that date. In preparing those financial statements, suitable accounting policies have been used, framed, to the best of the directors’ knowledge and belief, by reference to reasonable and prudent judgements and estimates and applied consistently. Applicable accounting standards have been followed. The directors are also required to indicate where the financial statements are prepared other than on the basis that the Association is a going concern.
2
## **West London Mission Housing Association Limited**
## **Directors’ report (continued) For the year ended 31 August 2022**
The directors are responsible for ensuring that arrangements are made for keeping proper books of account with respect to the Association's transactions and its assets and liabilities and for maintaining a satisfactory system of control over the Association's books of account and transactions. The directors are also responsible for ensuring that arrangements are made to safeguard the assets of the Association and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Value for Money statement**
We are committed to providing excellent services that offer real value to our service users at a reasonable cost to funders. Our policy is to cover the full cost of services including proper provision for cyclical repairs. We benchmark our staff costs against comparable roles in the public and voluntary sector, and aim to develop the talents of all staff by a disciplined performance management process. We undertake competitive tendering for major works to properties. As far as feasible we focus on energy efficiency.
## **Statement as to disclosure of information to auditors**
We have taken all the necessary steps to make ourselves aware, as directors, of any relevant audit information and to establish that the auditors are aware of that information. As far as the directors are aware, there is no relevant audit information of which the company’s auditors are unaware.
This report has been prepared in accordance with the special provisions of S414 (3) of the Companies Act 2006 relating to small companies.
## **Auditors**
Moore Kingston Smith LLP have signified their willingness to continue in office and a resolution to re-appoint Moore Kingston Smith LLP as auditors to the company will be proposed at the Annual General Meeting.
Approved by the Board on ……………….. 2023 and signed on its behalf by 17 April
Mr M Single
Director
3
**West London Mission Housing Association Limited**
## **Independent auditor’s report to the members of West London Mission Housing Association Limited**
## **Opinion**
We have audited the financial statements of West London Mission Housing Association Limited (the ’parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 August 2022 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Association Statements of Financial Position, the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 August 2022 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS102 the Financial Reporting Standard applicable to the UK and Republic of Ireland, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019; and
- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the
4
## **West London Mission Housing Association Limited**
financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees’ annual report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.
We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 require us to report to you if, in our opinion:
- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Trustees’ Annual Report and from preparing a strategic report.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 2-3, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s Responsibilities for the audit of the financial statements**
We have been appointed as auditor under the Companies Act 2006 and section 151[1] of the Charities Act 2011 and report in accordance with those Acts.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
5
## **West London Mission Housing Association Limited**
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and parent charitable company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.
Our approach was as follows:
6
## **West London Mission Housing Association Limited**
- We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council
- We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and, in respect of the consolidated financial statements, to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters which we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company, the charitable company’s members, as a body, and the charity’s trustees, as a body, for our audit work, for this report, or for the opinion we have formed.
Date 19 April 2023 Andrew Stickland (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor 9 Appold Street London EC2A 2AP
Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.
7
**West London Mission Housing Association Limited**
## **Consolidated Statement of Comprehensive Income For the year ended 31 August 2022**
|**Notes**
**Turnover**
**3**
Operating costs
**3**
**Operating (deficit)**
**3**
Other income
Interest payable and similar charges
Change in fair value of investments
**Surplus/(Deficit) on ordinary activities**
**before taxation**
**5**
Tax on ordinary activities
**Surplus/(Deficit) for the year**
Transfer from designated reserves
**Surplus/(Deficit) for the year carried**
**forward**
Balance brought forward at 1 September
2021
**Balance carried forward at 31 August**
**2022**|**2022**
**£**
498,930
(1,337,100)
(838,170)
927,810
(151,043)
(25,603)
(87,006)
-
(87,006)
68,812
(18,194)
315,121
296,927|**2021**
**£**
1,354,490
(2,337,294)|
|---|---|---|
|||(982,804)
1,067,671
(80,370)
27,652|
|||32,149
-|
|||32,149
15,319|
|||47,468
267,653|
|||315,121|
The Association’s results all relate to continuing activities, except that the service at The Haven ceased in September 2021 and Burgess Park House was suspended in February 2022. The Association has no recognised surpluses or deficits other than the deficit for the current or prior year.
8
**West London Mission Housing Association Limited**
## **Consolidated Statement of Financial Position as at 31 August 2022**
|**Notes**
**Fixed assets**
Housing properties – at cost
**8**
Less: Depreciation
**8**
Total Housing properties
**Investments**
**Current assets**
**9**
Debtors
**11**
Cash at bank and in hand
**Creditors: Amounts falling due within**
**one year**
**12**
**Net current (liabilities)**
**Total assets less current liabilities**
**Creditors – amounts falling due after**
**more than one year**
Loans and mortgages
**13**
Government grants
**Net assets**
**Reserves**
**14**|**2022**
**£**
7,558,605
(2,636,826)
4,921,779
284,998
284,060
17,941
302,001
(1,155,421)
(853,420)
4,353,357
(940,853)
(2,250,607)
1,161,897
1,161,897|**2021**
**£**
7,060,941
(2,478,965)|
|---|---|---|
|||4,581,976|
|||295,593
349,754
25,897|
|||375,651
(725,287)|
|||(349,636)|
|||4,527,933
(919,373)
(2,359,657)|
|||1,248,903|
|||1,248,903|
These financial statements have been prepared in accordance with the special provisions of S.414 (3) of the Companies Act 2006 relating to small companies.
These financial statements were approved by the Board on ……………2023 and signed on its behalf by 17 April
Mr G T Slater, Director
Mr M Single, Director
9
**West London Mission Housing Association Limited**
## **Association Statement of Financial Position as at 31 August 2022**
|**Notes**
**Fixed assets**
Housing properties – at cost
**8**
Less: Depreciation
**8**
Total Housing properties
**Current assets**
Debtors
**11**
Cash at bank and in hand
**Creditors: Amounts falling due within one**
**year**
**12**
**Net current (liabilities)**
**Total assets less current liabilities**
**Creditors – amounts falling due after more**
**than one year**
Loans and mortgages
**13**
Government grants
**Net assets**
**Reserves**
**14**|**2022**
**£**
7,558,605
(2,636,826)
4,921,779
282,165
7,907
290,072
(1,155,421)
(865,349)
4,056,430
(940,853)
(2,250,607)
864,970
864,970|**2021**
**£**
7,060,941
(2,478,965)|
|---|---|---|
|||4,581,976|
|||347,857
8,266|
|||356,123
(725,287)|
|||(369,164)|
|||4,212,812
(919,373)
(2,359,657)|
|||933,782|
|||933,782|
These financial statements have been prepared in accordance with the special provisions of S.414 (3) of the Companies Act 2006 relating to small companies.
These financial statements were approved by the Board on ……………………..2023 and signed on its 17 April behalf by
Mr G T Slater, Director
Mr M Single, Director
10
**West London Mission Housing Association Limited**
## **Consolidated Statement of Cash Flows for the year ended 31 August 2022**
|**Cash outflows from operating activities**
Surplus / (deficit) for the financial year
Interest paid, less received
(Gains)/losses from investments
Depreciation charge
Amortisation credit
Decrease / (increase) in debtors
(Decrease) / increase in creditors
**Net cash generated from operating activities**
**Cash flows from investing activities**
Interest received
Purchase of investments
Purchase of fixed assets
Disposal of fixed assets
**Net cash inflows from investing activities**
**Cash flows from financing activities**
Interest paid
Increase in long term borrowings
**Net cash (outflows) from financing activities**
**Net increase/(decrease) in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Cash and cash equivalents comprise:
Cash at bank and in hand
**Analysis of changes in net (debt)**
Cash at bank and in hand
Loans due within one year
Loans due after one year
Net debt|**At 1.09.21**
**£**
25,897
(213,906)
(919,373)
(1,107,382)|**2022**
**£**
(87,006)
143,634
25,603
157,859
(109,051)
65,694
430,134
626,867
7,409
(15,005)
(497,663)
-
(505,259)
(151,043)
21,480
(129,563)
(7,956)
25,897
17,941
17,941
**Cashflows**
**£**
(7,956)
1,064
(21,480)
(28,372)|**2021**
**£**
32,149
60,554
(27,652)
147,486
(109,051)
(58,355)
(12,835)|
|---|---|---|---|
||||32,296|
||||19,816
(10,018)
-
-|
||||9,798|
||||(80,370)
47,296|
||||(33,074)|
||||9,021
16,876|
||||25,897|
|||||
||||25,897|
||||**At 31.08.22**
**£**
17,941
(212,842)
(940,853)
(1,135,754)|
11
**West London Mission Housing Association Limited**
## **Notes to the financial statements For the year ended 31 August 2022**
## **1. Status of the company**
The company is incorporated under the Companies Act 2006 and is a company limited by guarantee, without a share capital. It is also a registered charity, registration number 281929, and as such is exempt from corporation tax.
It is also registered with the Regulator of Social Housing, registration number LH3373, in accordance with section 5 of the Housing Association Act 1996, as it is engaged in housing activities as defined in that Act.
The Directors have assessed whether the use of the going concern basis is appropriate and considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The Directors have made this assessment for a period of at least one year from the date of approval of the financial statements. West London Mission Circuit continues to provide support to the Company and have confirmed that they will continue to support the Company for the foreseeable future and at least for 12 months from approval of these financial statements. On this basis the Directors have concluded that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
## **2a. Accounting policies**
## a) **General information and basis of accounting**
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, in accordance with Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council, the Housing SORP 2018 or where silent, the Charities SORP 2019, and comply with the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019.
In accordance with the small companies regime, the company has taken advantage of the exemption available, by virtue of its size, from the requirement to prepare a Strategic Report.
These financial statements incorporate the financial statements of the individual housing and community services located in the properties mentioned therein.
The Association is the sole Trustee of The Donald Soper Fund and so as required by the Charities SORP, these financial statements incorporate the income, expenditure, assets and liabilities of the West London Mission Donald Soper Fund, on a line by line basis.
The West London Mission Circuit manages the properties owned by the company and the resulting surplus or deficit (except for amortisation and depreciation on housing properties, amounts set aside for dilapidations and surplus on property disposals) is passed to or financed by the West London Mission Circuit.
## **b) Property, plant and equipment - housing properties**
Housing properties are shown at cost, including associated legal fees and charges and other expenses of a capital nature. Component accounting has been adopted as recommended by the Statement of Recommended Practice (SORP) relating to housing properties and properties have been split into land, structure, roof, electrics, central heating and kitchen.
The components of the properties are shown at cost. Cost includes the cost of acquiring land and buildings, development costs, interest charges incurred during the development period and expenditure incurred on improvements, which comprise the modernisation and extension of existing properties. Interest on mortgage loans financing development is capitalised up to
12
**West London Mission Housing Association Limited**
## **Notes to the financial statements For the year ended 31 August 2022**
the date of practical completion of each scheme.
Each identified component is depreciated over its useful economic life as follows:
|Land|Not|depreciated|
|---|---|---|
|Structure|50|Years|
|Roof|30|Years|
|Electrics|25|Years|
|Central heating|15|Years|
|Kitchens|10|Years|
Any permanent diminution in the value of such properties is charged to the Statement of Comprehensive Income as appropriate.
## **c) Social Housing Grant and other government grants**
Where grants are received from government agencies such as the Homes and Communities Agency, local authorities, devolved government agencies, health authorities and the European Commission which meet the definition of government grants they are recognised when there is reasonable assurance that the conditions attached to them will be complied with and that the grant will be received.
Government grants are recognised using the accrual model and are classified either as a grant relating to revenue or a grant relating to assets. Grants relating to revenue are recognised in income on a systematic basis over the period in which related costs for which the grant is intended to compensate are recognised. Where a grant is receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support with no future related costs, it is recognised as revenue in the period in which it becomes receivable.
Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Grants received for housing properties are recognised in income over the expected useful life of the housing property structure. Where a grant is received specifically for components of a housing property, the grant is recognised in income over the expected useful life of the component.
Government grants are recognised as revenue when the grant proceeds are received or receivable. Where a grant imposes specified future performance-related conditions it is recognised as revenue when the performance-related conditions are met. A grant received before the revenue recognition criteria are satisfied is recognised as a liability. Where government grant is provided for the construction of housing properties within a specific scheme, then the performance related condition is met when the construction of the housing properties is complete.
## **d) Recycling of grants**
Where there is a requirement to either repay or recycle a grant received for an asset that has been disposed of, a provision is included in the Statement of Financial Position to recognise this obligation as a liability. When approval is received from the funding body to use the grant for a specific development, the amount previously recognised as a provision for the recycling of the grant is reclassified as a creditor in the Statement of Financial Position.
On disposal of an asset for which government grant was received, if there is no obligation to repay the grant, any unamortised grant remaining within liabilities in the Statement of Financial Position related to this asset is derecognised as a liability and recognised as revenue in surplus or deficit in the Statement of Comprehensive Income.
13
**West London Mission Housing Association Limited**
## **Notes to the financial statements For the year ended 31 August 2022**
## **e) Furnishing, fittings and equipment**
All small additions and replacements for all projects are written off in the period of purchase, with the exception of major items which are written off over 3 to 5 years.
## **f) Reserves**
The property equity reserve is to record realised gains on the disposal of properties and absorbs the depreciation charge.
The cyclical maintenance reserve is based on the association’s obligation to provide on a continuing basis for the repairs and maintenance of its properties, based on a planned programme of works.
## **g) Taxation**
The company has been granted charitable status and is not liable to corporation tax on its activities for the year.
## **h) Turnover**
Turnover represents room fees and service charges receivable net of voids, revenue grants and other income. The other income relates primarily to other grants. Service charge income is recognised when expenditure is incurred as this is considered to be the point at which the service has been performed and the revenue recognition criteria met. Turnover arises solely within the United Kingdom.
## **i) Financial instruments**
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.
## **Financial assets carried at amortised cost**
Financial assets carried at amortised cost comprise rent arrears, trade and other receivables and cash and cash equivalents. Financial assets are initially recognised at fair value plus directly attributable transaction costs. After initial recognition, they are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
If there is objective evidence that there is an impairment loss, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced accordingly.
A financial asset is derecognised when the contractual rights to the cash flows expire, or when the financial asset and all substantial risks and reward are transferred.
If an arrangement constitutes a financing transaction, the financial asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
## **Financial liabilities carried at amortised cost**
These financial liabilities include trade and other payables and interest bearing loans and borrowings.
14
**West London Mission Housing Association Limited**
**Notes to the financial statements For the year ended 31 August 2022**
Non-current debt instruments which meet the necessary conditions in FRS 102, are initially recognised at fair value adjusted for any directly attributable transaction cost and subsequently measured at amortised cost using the effective interest method, with interestrelated charges recognised as an expense in finance costs in the Statement of Comprehensive Income. Discounting is omitted where the effect of discounting is immaterial. A financial liability is derecognised only when the contractual obligation is extinguished, that is, when the obligation is discharged, cancelled or expires.
## **Financing transactions – rent arrears**
For rent arrears where the arrangement constitutes, in effect, a financing transaction because of extended credit arrangements the arrears are derecognised as a financial asset and a new financial asset measured at the present value of the future payments discounted at an appropriate market rate of interest. The present value adjustment is recognised in surplus or deficit in the Statement of Comprehensive Income.
A review has been undertaken on all residents who currently have a payment plan in place for rent arrears. Following assessment, it has been confirmed that the payment plan totals are not material, and therefore no adjustment has been necessary in the financial statements.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and demand deposits.
## **j) Investments**
Investments are included in the balance sheet at market value.
All movements in value arising from investment changes or revaluation are shown in the Statement of Financial Activities.
Realised gains or losses on investments are calculated as the difference between the disposal proceeds and market value at the beginning of the year. Unrealised gains or losses are derived from the movement in market values during the year.
## **2b. Significant management judgements and key sources of estimation uncertainty**
The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.
## **Significant management judgements**
The following are management judgements in applying the accounting policies of the Association that have the most significant effect on the amounts recognised in the financial statements.
15
**West London Mission Housing Association Limited**
## **Notes to the financial statements For the year ended 31 August 2022**
## **Estimation uncertainty**
The Association makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
## **Fair value measurement**
Management uses valuation techniques to determine the fair value of assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management base the assumptions on observable data as far as possible but this is not always available. In that case, management uses the best information available. Estimated fair values may vary from the actual process that would be achievable in an arm’s length transaction at the reporting date.
16
## **West London Mission Housing Association Limited**
**Notes to the financial statements For the year ended 31 August 2022**
## **3. Turnover, operating costs and operating surplus /(deficit)**
|**Income and expenditure from lettings**
Housing accommodation
**Other income and expenditure**
Other|**Turnover**
**£**
366,620
132,310
498,930|**2022**
**Operating**
**costs**
**£**
1,001,255
335,845
1,337,100|**Operating**
**surplus/**
**(deficit)**
**£**
(634,635)
(203,535)
(838,170)|**Turnover**
**£**
1,134,194
220,296
1,354,490|**2021**
**Operating**
**costs**
**£**
2,144,503
192,791
2,337,294|**Operating**
**surplus/**
**(deficit)**
**£**
(1,010,309)
27,505
(982,804)|
|---|---|---|---|---|---|---|
17
## **West London Mission Housing Association Limited**
## **Notes to the financial statements For the year ended 31 August 2022**
## **4. Income and expenditure from lettings**
|**Income**
Rent and service charges receivable
Voids
Net rental income
Government grants taken to income
Turnover from lettings
**Operating expenditure**
Services
Management
Routine maintenance
Operating costs on lettings
Operating (deficit) on lettings
**5.**
**(Deficit) on ordinary activities**
(Deficit) on ordinary activities for the year is
stated after charging:
Depreciation on tangible fixed assets
Amortisation of social housing grant
Auditors’ remuneration:-
In their capacity as external auditors|**2022**
**Supported**
**housing**
**£**
282,457
(78,821)
203,636
162,984
366,620
526,538
382,345
92,372
1,001,255
(634,635)
**2022**
**£**
157,859
(109,051)
10,000|**2021**
**Supported**
**housing**
**£**
1,200,284
(282,390)
917,894
216,300
1,134,194
1,776,843
303,740
63,920
2,144,503
(1,010,309)
**2021**
**£**
147,487
(109,051)
12,900|
|---|---|---|
18
## **West London Mission Housing Association Limited**
## **Notes to the financial statements For the year ended 31 August 2022**
## **6. Staff costs**
|Wages and salaries
Social security costs
Other pension costs
The above includes termination and redundancy
payments of £14,614 (2021: 26,971)
Average number of full time equivalent persons
employed during the year:
Management
Services
Total FTE employees
Average number of staff employed during the year:
Management
Services
Total employees|**2022**
**2021**
**£**
**£**
288,093
496,992
30,371
41,619
16,698
35,661
335,162
574,272
**Number**
**Number**
1
2
13
22
14
24
**Number**
**Number**
1
2
16
25
17
27|**2021**
**£**
496,992
41,619
35,661|
|---|---|---|
|||574,272|
No member of staff received any emoluments in excess of £60,000 in the current or prior year.
The Association makes payments to a group personal pension scheme for staff. The assets are held in an independently administered fund.
## **7. Directors’ emoluments**
None of the directors received any emoluments or were reimbursed for any expenses during the current year or prior year.
Salaries of the senior management team and key management personnel are charged in the financial statements of West London Mission Circuit.
19
## **West London Mission Housing Association Limited**
## **Notes to the financial statements For the year ended 31 August 2022**
## **8. Tangible fixed assets – Group and Association**
|**Cost**
At 31 August 2021
Additions
Disposals
**At 31 August 2022**
**Accumulated depreciation**
At 31 August 2021
Charge for the year
Released on disposals
**At 31 August 2022**
**Net book value**
**At 31 August 2022**
**At 31 August 2021**|**Housing properties held**
**for letting**
**Freehold**
**Leasehold**
**£**
**£**
**£**
3,773,709
3,287,232
339,119
158,545
-
-
4,112,828
3,445,777
841,421
1,637,544
81,255
76,606
-
-
922,676
1,714,150
3,190,152
1,731,627
2,932,287
1,649,689|**Housing properties held**
**for letting**
**Freehold**
**Leasehold**
**£**
**£**
**£**
3,773,709
3,287,232
339,119
158,545
-
-
4,112,828
3,445,777
841,421
1,637,544
81,255
76,606
-
-
922,676
1,714,150
3,190,152
1,731,627
2,932,287
1,649,689|**Total**
7,060,941
497,664
-|
|---|---|---|---|
||||7,558,605|
||||2,478,965
157,861
-|
||||2,636,826|
||||4,921,779|
||||4,581,976|
The leasehold interest in the St Luke’s Centre, 25A Wincott Street, London SE11 passed to the Association on 1 September 1995. The lease is for a term of 99 years commencing on 27 January 1989. The leasehold interest in Burgess Park House, 56 Camberwell Road, London SE5 is also for the term of 99 years and commenced on 28 September 2001.
## **9. Investments - Group**
|At 1 September 2021
Additions
Disposals
Movement in market values
At 31 August 2022|**2022**
**£**
295,596
15,005
-
(25,603)|
|---|---|
||
284,998
======|
20
## **West London Mission Housing Association Limited**
## **Notes to the financial statements For the year ended 31 August 2022**
|The above total comprised:
CFB units:
UK Equity Fund
Corporate Bond Fund
Property Investment Fund
Cost at 31 August 2022|119,976
95,582
69,440|
|---|---|
||
284,998|
||245,112|
## **10. Subsidiary Undertakings**
The results and financial position of the West London Mission Donald Soper Fund are as follows:
|**Statement of financial activities**
**Income from**
Donations and legacies
Investments
**Expenditure on**
Raising Funds
Charitable activities
Net gains/(losses) on investments
**Net income/(expenditure)**|**2022**
**£**
-
8,306
8,306
(897)
(-)
(897)
(25,603)
(18,194)|**2021**
**£**
13,556
6,790|
|---|---|---|
|||20,346|
|||(530)
(-)|
|||(530)|
|||27,652|
|||47,468|
21
## **West London Mission Housing Association Limited**
## **Notes to the financial statements For the year ended 31 August 2022**
|**10. Subsidiary Undertakings**
**(continued)**
**Balance Sheet**
**2022**
**Fixed assets**
**£**
Investments
284,998
**Current assets**
Debtors
1,895
Cash at bank and in hand
10,034
11,929
**Net assets**
296,927
**Funds**
296,927
1.**Debtors**
**Association Group**
**2022**
**2021**
**2022**
**£**
**£**
**£**
Trade debtors
92,811
158,504
92,811
West London Mission
Circuit Fund
189,356
189,353
191,249
~~-----------~~
-----------
----~~- - -~~
282,166
347,857
284,060||**2021**
**£**
295,596|
|---|---|---|
|||1,895
17,630|
|||19,525|
|||315,121|
|||315,121|
|||**2021**
**£**
158,504
191,250
~~-----------~~
349,754|
11. **Debtors**
22
## **West London Mission Housing Association Limited**
## **Notes to the financial statements For the year ended 31 August 2022**
## **12. Creditors: Amounts falling due within one year**
|Trade creditors
Accruals
Housing loans (see
note 13)
West London Mission
- WLM Services
Hinde Street
Methodist Church
West London Mission
Circuit Fund|**Association**
**2022**
**2021**
**£**
**£**
167,610
150,462
10,000
11,340
212,842
213,906
680,916
134,849
13
13
84,040
214,717
1,155,421
725,287|**Group**
**2022**
**2021**
**£**
**£**
167,610
150,462
10,000
11,340
212,842
213,906
680,916
134,849
13
13
84,040
214,717
~~--~~
~~--~~
1,155,421
725,287|**Group**
**2022**
**2021**
**£**
**£**
167,610
150,462
10,000
11,340
212,842
213,906
680,916
134,849
13
13
84,040
214,717
~~--~~
~~--~~
1,155,421
725,287|
|---|---|---|---|
||||
725,287|
## **13. Creditors: Amounts falling due after more than one year**
|Housing loans
Government grants|**Association**
**2022**
**2021**
**£**
**£**
940,853
919,373
2,250,607
2,359,657
3,191,460
3,279,030|**Group**
**2022**
**2021**
**£**
**£**
940,853
919,373
2,250,607
2,359,657
3,191,460
3,279,030|**Group**
**2022**
**2021**
**£**
**£**
940,853
919,373
2,250,607
2,359,657
3,191,460
3,279,030|
|---|---|---|---|
||||3,279,030|
In respect of the housing loans £920,853 (2021: £899,373) represents the balance outstanding under a loan from the West London Mission Circuit in 2001 for the purchase of The Haven. The loan is secured by a charge over the property and is repayable in instalments commencing at £20,000 per annum, both principal and repayments being index linked. Interest is payable at 4.5%. None (2021: £nil) of this liability is included in creditors due within one year.
The remaining £20,000 consists of an interest-free loan or repayable grant from the Home Office on the erection of Katherine Price Hughes House in 1974. It is not repayable while the building continues to be used as an approved premise.
23
## **West London Mission Housing Association Limited**
## **Notes to the financial statements For the year ended 31 August 2022**
|**Government grants**
At 1 September 2021
Amortisation to Statement of Comprehensive
Income
At 31 August 2022|**2022**
**£’000**
2,359,658
(109,051)
2,250,607|**2021**
**£’000**
2,468,709
(109,051)
2,359,657|
|---|---|---|
Government grants may become payable, if a Registered Provider sells an asset, to which a grant was attached, and then fails to recycle it with alternative social housing properties within three years.
The total accumulated amount of capital grant received or receivable at the Statement of Financial Position date is £3,921,446.
## **14. Reserves**
|**Designated reserves**
**Restricted**
**Donald**
**Soper**
**Fund**
**Property**
**equity**
**reserve**
**Cyclical**
**maintenance**
**reserve**
**Income &**
**expenditure**
**£**
**£**
**£**
**£**
**£**
At 1 September 2021
315,121
744,429
189,353
-
Surplus/(Deficit) for the year
(18,194)
-
-
(68,812)
Transfers between reserves
-
Depreciation /
amortisation
(68,812)
-
68,812
-
Addition to maintenance
reserve
-
-
-
-
Charged to maintenance
reserve
-
-
-
At 31 August 2022
296,927
675,617
189,353
(-)|**Total**
1,248,903
(87,006)
-
-
-|
|---|---|
||1,161,897|
24
## **West London Mission Housing Association Limited**
## **Notes to the financial statements For the year ended 31 August 2022**
## **15. Analysis of Net Assets**
|Fixed assets
Investments
Current assets
Creditors due within one year
Creditors due after one year
**16. Units in management**
**Under management at end of year:**
Housing accommodation – bed spaces|**Restricted**
**Funds**
**£**
284,998
11,929
~~----~~
296,927
**2022**
**Number**
71|**Designated**
**Funds**
**Total**
**£**
**£**
4,921,779
4,921,779
284,998
290,072
302,001
(1,155,421)
(1,151,421)
(3,191,460)
(3,191,460)
864,970
1,161,897
**2021**
**Number**
71|**Total**
**£**
4,921,779
284,998
302,001
(1,151,421)
(3,191,460)|
|---|---|---|---|
||||1,161,897|
25
**Notes to the financial statements For the year ended 31 August 2022**
## **West London Mission Housing Association Limited**
## **17. Related party transactions**
The West London Mission Circuit (including housing and community services controlled by the Circuit) has trustees in common with the Association and is therefore considered to be a related party. The Circuit is not considered to be under common control with the Association as a minority of the Association’s board members are trustees of the Circuit.
During the year, the Association undertook the following transactions with related parties:
||||**Amount**|**owed to/(by)**|
|---|---|---|---|---|
||**Value of transactions**||**WLM Housing**||
|**Details**||**during year**||**Association**|
||**2022**|**2021**|**2022**|**2021**|
||**£**|**£**|**£**|**£**|
|**West London Mission Circuit**|||||
|Housing loans|(20,416)|(48,360)|(1,133,695)|(1,113,279)|
|Indexation on housing loans|110,578|40,985|-|-|
|Interest on housing loans|40,466|39,385|-|-|
|Settlement account|-|-|(84,040)|(214,717)|
|Debtor (dilapidations balances)|||||
||-|23,117|189,353|189,353|
|**WLM Services**|||||
|Project deficit grant|548,373|938,804|||
|Administration charges|71,951|405,000|||
|Rental income received from|||||
|KPH House|131,040|131,040|||
|Settlement account|(546,067)|-|(680,916)|(134,849)|
26